6-February-2024-Special-Article

RENEWABLES 2023 REPORT

The International Energy Agency (IEA) recently released its Renewables 2023 report, offering insights into the global renewable energy sector’s dynamics, progress, and challenges.

Major Highlights of the Renewables 2023 Report:

Record Growth and China’s Dominance:

• Global renewable capacity additions surged by nearly 50% to almost 510 GW in 2023, the fastest growth rate in two decades.
• China played a crucial role, commissioning as much solar PV in 2023 as the entire world did in 2022.

Global Power Mix Transformation:

• Renewables projected to surpass coal as the largest source of electricity generation by 2025.
• Wind and solar PV expected to become dominant sources by 2028.

Accelerated Growth in Key Regions:

• US, EU, India, Brazil experiencing accelerated growth in solar PV and onshore wind installations.
• Middle East and North Africa witnessing policy-driven renewable capacity growth.
• India forecasted to add 205 GW over 2023-2028, becoming the world’s third-largest market for renewables.

Solar PV Market Dynamics:

• Solar PV module prices dropped by nearly 50% in 2023.
• Solar PV and onshore wind are now cheaper than both new and existing fossil fuel plants.

Biofuel Expansion and EV Adoption:

• Emerging economies, led by Brazil, driving biofuel expansion.
• Biofuels and renewable electricity in EVs expected to offset significant oil demand by 2028.

Major Challenges Highlighted:

Financial Constraints:

• Emerging economies face inadequate financing for renewable projects.
• Rising interest rates increasing financing costs, challenging for developers.

Grid Bottlenecks:

• Rapid deployment of renewables leading to integration challenges and increased curtailment due to inadequate grid expansion.

Wind Industry Challenge:

• Wind industry facing challenges from supply chain disruptions, especially in offshore wind.

IEA’s Recommendations:

• IEA urges governments to triple global renewable power capacity by 2030, aligning with the Net Zero Emissions by 2050 (NZE) Scenario.
• Address policy uncertainties, invest in grid infrastructure, ease administrative barriers, and enhance financing in emerging economies to meet 2030 targets.

India’s Renewable Energy Targets and Government Initiatives:

Renewable Energy Targets:

• Panchamrit Goals: 500 GW non-fossil fuel energy capacity, half of energy from renewables, reduce CO2 emissions, and net-zero emissions by 2070.
• NDC update in 2022: 45% reduction in emissions intensity of GDP by 2030.

Government Initiatives:

• PM-KUSUM: Promoting solar energy among farmers.
• National Solar Mission: Aims for sustainable development through solar energy.
• PLI Scheme for Solar PV Modules: Incentivizing high-efficiency solar modules.
• Offshore Wind Energy Policy: Encouraging offshore wind projects.
• Global Biofuel Alliance and International Solar Alliance: Promoting biofuels and solar energy globally.
• Suryamitra Skill Development Programme: Focusing on skill development in solar energy.

What is IEA?

Establishment and Evolution:

• Established in 1974 after the 1973-1974 oil crisis to ensure oil supply security.
• Initially focused on oil supply security, its mandate expanded over time to cover a broader range of energy issues.
• Expanded mandate in 2022 to guide countries toward building net-zero emission energy systems.

Membership:

• Comprises 31 member countries and thirteen association countries, including India.
• Candidate countries must be OECD members.

Major Reports:

• World Energy Outlook Report.
• India Energy Outlook Report.
• World Energy Investment Report.
• Annual Energy Efficiency Market Report.

Conclusion:

The Renewables 2023 report provides a nuanced understanding of the global renewable energy landscape.

India’s ambitious renewable energy targets and government initiatives align with the IEA’s recommendations, emphasizing the need for concerted efforts to address challenges and accelerate the transition to sustainable and cleaner energy sources.

Mains Question:

1. Discuss the key findings and recommendations of the International Energy Agency’s Renewables 2023 report. Examine the role of major economies, including China and India, in the global renewable energy landscape. (150 WORDS)